Second buyer makes rescue bid for Poundland as retailer faces collapse

A second buyer has made a rescue bid for Poundland as the discount retailer teeters on the brink of collapse, with thousands of jobs at risk. London-based Xyra Group has offered to pay off half of Poundland's outstanding debts - a key sticking point in takeover talks so far - immediately. The rest would be deferred.

With Poundland close to collapse, US-based owners Gordon Brothers have already rejected a rival bid from an Irish property group which would have saved its 12,000 staff. Sources familiar with the offer said Xyra is offering to immediately pay off £12.5m of an outstanding £30m loan on Poundland's books. The offer came as Business Secretary Jonathan Reynolds held crunch talks with Gordon Brothers about the future of the business, urging the investment firm to protect staff however possible.

Gordon Brothers, which bought Poundland for £1 last June, committed at the meeting to prioritise offers which protect its shops and workers.